Canadian Mining Journal

News

GOLD: Klondex completes financing for Hollister and Esmeralda



NEVADA – Klondex Mines of Vancouver has closed a $129.5 million subscription offering with which to complete the purchase of the Hollister and Esmeralda gold mines and the mill located at the latter. The company offered 25.9 million receipts at a price of $5.00 each.

The gross proceeds of the offering, less certain expenses and half of the commission payable to the underwriters, have been deposited in escrow pending the acquisition of the mines and mills before Nov. 16, 2016. When the receipts are released from escrow, each of them may be exchanged for a special Klondex warrant that may be exchanged for a common share of Klondex before Dec. 16, 2016.

Klondex agreed to pay US$80 million for the mines and mill. The balance of the funds raised will be used for exploration and development of the properties.

Readers can visit www.KlondexMines.com for information on the company’s Midas and Fire Creek operations.